Issue - meetings

Items not on the agenda which the Chair of the meeting is of the opinion should be considered as a matter of urgency by reason of special circumstances as defined in Section 100B(4)(b) of the Local Government Act 1972.

The Chief Finance Officer circulated copies of a letter sent to the Chair of the Audit and Standards Committee. This updated Members on the current position of the Council’s financial accounts, which were due to be finalised by 31 July 2019. Members were advised that a number of elements had prevented this date from being met. Following discussion with the Council’s auditors, a decision had been made to delay the completion of the accounts ensuring they were thorough and supported by sound working papers. Members were advised that the Council’s new Auditors, Deloittes, had welcomed the Council’s offer of an Audit that already included an internal review.

Members raised the following points and officers responded:

·         Did the final accounts require formal approval? – they need approval and require to be signed off by the Chief Finance Officer.

·         What assurances were there that the financial accounts would be produced on time in future years?  - There were two components that impacted on the production of the accounts that compromised the timings: a number of key staff left the organisation following the Joint Transformation Programme. There were system changes that added additional pressures; however, once those systems were embedded the situation would improve.

·         When would the accounts be available and how long would the Audit take? - There was another 3 to 4 weeks of work to finalise the accounts. However, the audit was a more difficult timeline to predict as it relied on the provision of a time-slot by the Council’s auditors. The accounts, when ready, would be made available to the Committee in a draft form with an explanatory report.

·         Were there any large gaps or unforeseen issues within the Accounts? - There were no notable issues. Part of the work being done was to ensure this remained the case; the Council’s financial position remained unchanged. It was changes to the processes, not the data, which was being managed.

·         The external auditors suggested there was a cost to the delays and it appeared that the audit would not be completed until December. Was the figure known and what was the Council’s position as a result of the delay? - The figure was not known and the piece of work would being undertaken recognised the importance of the Audit. Through the analysis of robust financial information the Council will continue to make financial decisions that allow it to move forward.

RESOLVED to note the update.